Collegiate Times

The Senate approved President Barack Obama's $838 billion emergency legislation, the American Recovery and Reinvestment Act of 2009, yesterday.

Though lawmakers and parties disagree on exact figures, approximately $140 billion would be allocated for disbursement to struggling elementary, secondary and higher education systems over the next two years. As it stands now, Virginia Tech and its students may receive millions in funding and financial assistance.

According to the Congressional Budget Office stimulus breakdown, the big-ticket item is the State Fiscal Stabilization Fund. That fund assigns $79 billon to combat nationwide state budget deficits. Tech has been forced to absorb $27 million, or 15 percent of its budget, in state appropriation cutbacks.

This budget-balancing initiative could net Virginia $1.6 billion. However, as Steve Janosik of Tech's Education Policy Institute said, Virginia is not out of the dark -- or red -- yet. Janosik said that Virginia has a $3 billion shortfall in the budget.

Regardless of the outstanding deficit, according to CBO, a mandate requires that 61 percent of the funds be spent on education. This provision alone could provide millions to Tech.

To offset the expense of tuition and costs associated with higher education, the stimulus package also includes the American Opportunity Tax Credit. This measure temporarily restructures existing tax credits to improve affordability for low-income families and students.

Those who qualify will be given $2,500 in a partially refundable tax credit, the CBO report states, which is an increase of $850. Also, the eligibility to receive the tax credit has been extended from two to four years and, for the first time, includes costs such as textbooks.

The greatest impact on Tech students would come in the form of increased federal grants and loans. Secretary of Education Arne Duncan said to CNN that this provision comes, "at a time when going to college has never been more expensive, we have to help out."

According to the Office of Financial Aid, about 70 percent of Tech students receive some kind of financial assistance and, last year, 2,724 students were awarded a Federal Pell Grant. The stimulus package plans to raise the need-based grants by a total of $681 over the next two years, maximizing the grant to $5,412 annually.

Barry Simmons, director of Scholarships and Financial Aid at Tech, is enthusiastic about the prospect of increased grants.

 "It's a great boon to our students, and it ultimately reduces the amount of borrowing they'll have to do," Simmons said.

6,969 Tech students received an unsubsidized Federal Stafford Loan, which is not based on financial need, in 2007-08. According to the Council on Law in Higher Education, stimulus package could increase the loan by $2,000, potentially providing $9,500 to a qualified junior or senior.

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